- Analyst at Bernstein indicates that the Grayscale ruling was a turning point.
- Gautam Chhugani anticipates that Bitcoin will substantially profit from it.
- The largest cryptocurrency globally is presently hovering around $26,000.
The recent decision favoring Grayscale and opposing the Securities & Exchange Commission is considered a “turning point”, according to Gautam Chhugani – a Bernstein analyst.
Chhugani foresees Bitcoin gaining traction
Last week, a U.S. court determined that the regulator did not provide sufficient justification to prevent Grayscale from transforming its bitcoin trust into an exchange-traded fund.
This ruling represents a significant milestone towards the inaugural U.S. Bitcoin ETF and sets the stage for a considerable institution-driven surge in the largest cryptocurrency, as stated by Chhugani.
The robust performance in courts has improved ETF prospects, and the advancing institutional interest is positioning crypto for an extraordinary cycle led by institutional capital.
Earlier this year, Ripple achieved a notable victory in its protracted lawsuit against the Securities & Exchange Commission as well (find out more).
When could a Bitcoin ETF be authorized?
In spite of favorable catalysts in recent months, Bitcoin continues to hover around the $26,000 mark – significantly below its year-to-date peak of over $31,000. Nevertheless, Bernstein’s Chhugani remarked in his research memo today:
This cycle is slower to commence, but is established on much stronger fundamental bases of regulatory clarity and an influx of strategic long-term participants into the space.
He anticipates that the first U.S. Bitcoin ETF could materialize by March of 2024 at the latest. However, the analyst does not foresee that exchange-traded fund being the final occurrence.
Chhugani is confident that asset managers will advocate for a Spot Ethereum ETF subsequently and may even explore Solana and Polygon in the future.
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